Title

Foreign investors’ trading behaviors around merger and acquisition announcements: Evidence from Korea

Document Type

Article

Source of Publication

Finance Research Letters

Publication Date

1-1-2019

Abstract

© 2019 Elsevier Inc. This study examines foreign investors’ trading behaviors around merger and acquisition (M&A) announcements in the Korean stock market (both KOSPI and KOSDAQ markets). We find evidence that foreign investors are more likely to buy target stocks with larger wealth effects on the KOSPI market. In contrast, our results reveal that both foreign and domestic investors are not able to identify target stocks with larger wealth effects on the KOSDAQ market. Further, we find that in response to M&A announcements, only foreign investors can find target stocks with greater subsequent returns on the KOSDAQ market, but not on the KOSPI market.

ISSN

1544-6131

Publisher

Elsevier Ltd

Volume

37

First Page

101375

Disciplines

Business

Keywords

Foreign investors, Korean stock market, Mergers and acquisitions, Trading behaviors

Scopus ID

85076251852

Indexed in Scopus

yes

Open Access

no

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